Private players, such as Monnet Ispat, Jindal Steel and Tata Steel, whose captive coal blocks have been taken away by the Government after they failed to start production within the stipulated time frame, feel the parameters are not in sync with ground realities.
Development of captive coal blocks has suffered because of increasing difficulty in obtaining land use and environmental permits, leading to regulatory uncertainty for infrastructure and other large-scale projects, the companies say, adding that the Government should help the miners get clearances on time.
“No policy can be true, where nearly 80 per cent of companies are failing to deliver,” said Sandeep Jajodia, Chairman and Managing Director of the Monnet Group.
On December 17, the government issued an order to de-allocate Urtan North coal block allocated to Jindal Steel and Monnet Ispat in September 12, 2009.
According to the Coal Ministry, there had been a delay of up to three years in approval of the mining plan. Environmental clearance, grant of mining lease, land acquisition, mine opening permission and coal production are still pending.
According to Jajodia, there are practical problems that hold up the captive miners, such as a district collector may take months to hold a public hearing for land acquisition. The forest and environment clearance procedure starts from the district level and goes to the State and finally to Ministry of Environment. “Over the past many years, we were pushed to make investments and set up end-use plants. Since we couldn’t get environment and forest clearance within two years for the coal mine, it was de-allocated,” Jajodia added.
Amarkonda-Murgadangal block in Jharkhand allocated to JSPL and Gagan Sponge Iron Private were also de-allocated on December 23. More than 10 mines allotted to private and Government companies have been de-allocated in the past few months.
“The Government should take up these issues in a time-bound manner, rather than unilaterally announcing de-allocation. We have downstream projects streamlined with mines. We have mobilised contractors. Lot of commitments have been made and there is no cognisance of that. We appeal to the Government to give proper audience to private players,” said Ravi Uppal, Managing Director and CEO of JSPL.
Most of the de-allocated blocks face the additional problem of getting prospecting licenses and mining leases by State Governments.
“Instead of de-allocation, the Government should have strengthened the institutional mechanism to expedite clearances,” said B. Muthuraman, Vice-Chairman, Tata Steel Ltd.